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tv   MONEY With Melissa Francis  FOX Business  May 15, 2013 5:00pm-6:01pm EDT

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david: number one thing to watch tomorrow will be the initial jobless claims. economists expect claims to rise by 330,000. last week the claims fell to nearly the lowest level in five years. liz: have a great night. "money" with melissa francis is next. melissa: i'm melissa francis and here's "who made money today". carl icahn, six months ago he became a major netflix shareholder. the billionaire investor bought 5.5 million shares at $58 apiece. netflix stock rallied 4% today, hitting a two-year high. since icahn bought his stake in netflix he has made a profit of more than a billion dollars! wow! losing money today, anyone who owns apple. apple management a top hedge fund cut their holdings of apple in the first quarter. that is according to sec filings. the news sent apple shares sliding more than 3%. the university of southern california making music money mogul.
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dr. dr. e and chair of interscope records are, i'm sure i butchered that. are donating $70 million tot school that endow a arts and music academy. no matter what his name is, it is always about money >> the decision to issue this subpoena was made by the people who are presently involved in the case the matter is being supervised by the deputy attorney general. i am not familiar with the reasons why the subpoena was constructed in the way that it was because i'm simply not a part of the case. melissa: yeah, he has nothing to do with it. that is attorney general eric holder today passing the buck when asking about the department of justice grabbing associated press phone records basically saying he didn't know what the people under him were doing. doesn't sound like a good excuse to me.
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mr. attorney general, you are the boss. it is your job to know what your employees are doing. you know that wouldn't fly in the private sector, i don't know, like at a bank? this coupled with the irs talk targeting conservative groups make as rough week in washington. it is scandals galore. with me former sec chairman harvey pitt and "barron's" editor, jack. -- jack hough. thank you for joining me. all he did was try to distance himself from anything going on. he had no knowledge. he was not responsible to this group. that is up to them. why is that, why is that an effective defense in washington? but if you look at corporate america it certainly isn't. look what is going on with jamie dimon. saying he didn't know what was going on with the london whale scandal didn't get him out of trouble. what do you think? >> i think there's a real problem here. first of all we don't know why he has recused himself. that's number one.
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second of all, there is a difference between dealing with the substance of these matters and actually engaging in conduct that violates first amendment rights. that's something that he isn't recused from and he should be very concerned about, and take a real interest in. so i think there's a lot of explaining to be done here but there's no transparency coming out of the administration right now. melissa: jack, they must strategy because this is certainly -- >> i wish i could screw up that big and play it that cool. i mean it's amazing. this is all kinds of dumb. what comes out of this is that this, there are always conflicts of interest between the press and the government. the press is trying to uncover more information. sometimes the government wants to keep things out of the public view for a while. melissa: yeah. >> relationship works only because the press cooperates out of a sense of ethical obligation. now when you have the department of justice using
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bully tactics to go after sources, that, that feels like less of an obligation when someone is bullying you like this. i don't see the department of justice getting anything good out of this. melissa: no. harvey, who is ultimately responsible do you think, and do you think heads roll? let's start with the ap scandal. >> i am very troubled about this because because if there have been improper leaks or things like that, there may be a governmental interest but when the press is involved, government has an obligation to be respectful of the first amendment rights that the press has. that's not what happened here and what was done was done in secrecy, without advance warning. it appears that nobody can explain exactly what was going on or why. and this is si unacceptable. i think this is an administration problem, and
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definitely an eric holder problem. melissa: jack, that was the first question at the press conference yesterday was, if you look at all the scandals and how they are laid out, whether it is benghazi, you know the administration goes and blames political culprits, people with agendas. if you look at irs you can believe the reports, if you look at the problem with the ap, well that's the department of justice. that's this one and even eric holder said that's deputy, that's not me. i'm not near it. the ap reporter said, at some point does the president have to take responsibility and say, basically i'm the ceo, i'm setting the tone? >> we seem to be running out of departments of government that can claim the moral high ground in investigating other departments of the government. you've got the department of justice trying to investigate the irs. at the same time it is trying to, you know, defend against its own scandal. i mean it seems like it is spinning a little out of control at the moment. melissa: harvey, do you agree with that? >> i do. particularly because, we
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don't know who authorized the irs to go after these groups, these conservative groups. one thing we do know is, that anyone who was involved knew what they were doing was wrong. and i find it highly incredible that some higher up people weren't aware of what was going on at the irs. melissa: harvey, that has been the key question since the irs portion of this scandal came out, is who's idea was it originally to target these groups? do you think we'll ever know that? >> well, we would know that but not necessarily and i agree with jack on this, not necessarily if the department of justice is conducting the investigation. we need somebody who is completely independent to tell us how this happened, and who knew. and right now we don't have that kind of information. melissa: jack, is it fair to link all these things together? and say, that it is coming from the top? or do they happen to be
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happening at the same time and it is bad luck? >> i'll tell you what, fair doesn't matter. they will be linked together. who it really hurts is the taxpayer. we need a government that can cooperate right now and get things done. this is just going to create more of a sideshow. one thing about the irs thing. i never like to let opportunity go by are you for simpler taxes? we have the irs whether you should get married, whether you should buy a house, how you should pay for health care, how you should fund retirement. it is a clear case this agency tries to do too much. melissa: that is great point. as i was reading up on the specifics of this particular law where they're exempt from the tax status and they're exempt from the tax, i was wondering why are any of these groups except from paying tax? does it argue for a simpler tax code at the end of the day? >> absolutely. and as jack points out, it would eliminate a lot of this problem. the other point to keep in mind, is this isn't the
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irs's first scandal. the irs has been slapped across the knuckles several times to these problems. if this were a private sector company, which had violated law and was now engauged in further violations of the law, holy hell would have to be paid but there is nothing like that being said of irs right now. melissa: yeah. all right, gentlemen, thanks to both of you. next on "money," what a week. shell, bp and statoil are being rigged accused of rigging oil prices for a decade. wait until you hear this. it could have affected the price you have been paying for everything. where is a time machine when you need it? tesla's stock is up more than 150% this year but is the company's first-ever profit all it appears? why every investor should listen up. more "money" straight ahead. ♪ she knows you ke no one else.
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♪ . melissa: from one scandal to another, boy it is like a
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buffet lately. some of the world's biggest oil companies are under fire for allegedly colluding to fix prices for at least 10 years. so far, shell, bp and statoil have been implicated by european regulators and the pricing agency platts, they're all accused of rigging prices crude-based products biofuels and and crude so you and individual to pay more for the pump and everything else for that matter. crude oil is in diapers, plastic you name it. here to drill down on details. john hofmeister former president of shell oil and john macy, the author of the debt of corporate reputation. qhu, that's rough. thanks to both of you guys for coming on. john hofmeister, let me start with you. basically the way this works it sounds a lot like the libor scandal. there are companies who report to platts at the end of the day what the price of what these various products were, that price then platts
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averages becomes a benchmark for a lot of things out there, a ton of things. just looking at the stats, it is 80% of products out there, 95% of crude transactions are based on this platts marker. only 20% on the nymex and the i.c.e. and cme which is what we all follow here..3 this is vast majority of oil prices are based on this platts thing that they are saying was rigged. do you believe it? >> no, i don't believe it. melissa: you don't? >> there is agragation, there is aggregation of numbers. those numbers would be independent obtained from each company. platts is simply reporting numbers. if we really wanted to go after price fixing, we should go after the cartel called opec which in fact does withold production in order to impact the price of oil. you know, when i was president of shell oil i was dragged in front of congress at least half a dozen times.
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i had letters of accusation from about 48 attorneys general. always accusing of having either withheld production or set price or somehow to guarranty a higher profit. melissa: right. >> every investigation that was happening, none of it came to anything because you know what? when an executive takes on a job like that, they know that the price fixing is a jailable offense. melissa: okay. >> and nobody in their right mind wants to go to jail over a price-fixing setting scheme. that is just nonsense. melissa: that is a good argument. let me ass john macy, let's drill down on the etails. the mechanism at least in part from what i'm reading they prevented, the oil companies involved prevented others from participating in the price process. which distorted the published price. so they kept others out so that those who called in, reported, hey, we sold this many barrels for this amount
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of money today, they tried to keep other guys out, there were fewer and just them and they would have more control. is that believable if that is the extent of it? we're looking on the screen those who are accused in participating in that? >> i absolutely agree with john on his big point opec is the real culprit here. but that doesn't mean these other folks are innocent and doesn't mean that our jails are not filled with people who have engaged in financial crime including price fixing. it is inconceivable it occurs but it does occur. let's take a look at the way platts actually figures this stuff out. melissa: yeah. >> so it's a bizarre system that make the libor system for figuring out adjustable rate mortgages a model of analytical rigor. they take a half hour window at the end of the trading day and look at bids, not actual trades, bids and offers and some trades and they let people in and they count their numbers. they don't let other people. there are companies, there
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is a hungarian company involved in the ethanol business. they said look, we went to the e.u. because we've been giving bids. our prices were a lot cheaper. they weren't accepting our bids. if they accepted them it would have brought the average down. john may be right. this may be all some great mystery but there are some facts that right now from a logical point of view, the best available explanation appears to be price fixing. melissa: john hofmeister, let me ask you because you're the former president of shell oil and shell is one of the names we were looking at on the screen there. do you have a vested interest in defending this and saying it wasn't the case? >> do i have a vested interest? do i own shares of shell? yes. i have shares of shell but i also know that honesty, integrity and respect for people are the core values of that company. and so welcoming in the investigators is part of what shell is apparently doing according to the report that i read. so, you know, there is nothing to hide.
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so open it up. and that's exactly what's happening. anybody can allege anything about anyone. melissa: yeah. >> an allegation is a cheap way to keep government officials busy when they have nothing better to do. and so i would stand on the values issue. melissa: john macy, real quick because we're running out of time, the way to fix this is have a market clearing transparent mechanism, right? maybe it is not possible in this case. >> it is possible. you have market prices. it is an incredibly thick market, why not use them? and, you know, the question is why would companies like, why are all these companies going to, you know the e.u. and saying what is going on here? what's their motivation? i --. melissa: that's a great point, yeah. >> so i certainly think that there is, you know, something to, you know, something to look at there. there is a big, there are big profits to be made in moving these prices or in manipulating these prices. a very small amount.
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i hope it hasn't happened. i wish i still had john's rosy view of the world of everybody being honest. i don't think that --. melissa: we've got to go. thanks to both of you. i am sure there is topic we'll spend more time on. it is just getting underway. time for the fuel gauge report. -- upcoming hurricane season and of course they can wreak havoc on energy supplies and prices. accuweather predicts eight named hurricanes will form this season. three of them are expected to make landfall in the u.s. i have no idea how they know that. oil production had a record high in north dakota. cordtoring the state mineral resources office. out put hit 780,000 barrels a day. despite tougher weather conditions that made it harder to drill. oil prices recovered after a steep early selloff. u.s. gasoline demand dropped off last week according to the department of energy but crude pounced back after stocks rallied. settling at 94.30 a barrel.
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coming up on "money," there is no hotter stock now than tesla. it is up 100%, 100% in the past month. but is tesla really become profitable? we'll do the math for you. plus the deficit is shrinking far quicker than thought. are this year's tax hikes actually to blame or is it just a drop in the bucket? we're going to debate it. coming up. do you have ever have too much money? snowed snowed. ♪ .
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♪ . melissa: talking of cruising along, have you noticed how much tesla's stock has exploded? check it out as shares have soared 150% so far this year. partly from first quarter profits of 11 million dollars, its first-ever profit. get this, its shares are up
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7% after-hours as it announces new offerings of common stock an convertable senior notes. what s really going on. can shares stay this hot? joining me to break this down, "wall street journal" auto columnist, dan neil. this is a company everyone loved to hate before. now everyone loves to love it. let me try to poke a few holes in it to see what you have to say about it. first of all, robert weinstein wrote some critical things about the last earnings report that got this ball rolling and got everybody so excited. they said if you looked at the $96 million that was geese profit, if you break it down there is no profit at all especially if you take away research and development costs which were about $55 million, administration selling and general costs were $47 million. so that actually means that they lost $5.6 million in the quarter. and that, that is not even touching on the government subsidies. if you back out the government subsidies, it is even worse than that. so who's right in terms of calculating the profits in
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your mind? >> well, the, the gross taxed income figure was around 17%, the gross profit and is actually closer, pretax is actually about 10%, still a lot of earnings thhre. and, look, this is the first of many quarterly reports for tesla and they are still paying off research and development. they are still paying off the tooling. they have enjoyed a with the california -- temporary bonus, with california air credits they sold and made 15% of their revenue this past quarter was that. so this is a company whose financials are in transition but the fundamentals continue to look better and better, mainly because of the car is just so killer. you can not buy this kind of press that this car is getting. and so in a landscape where, you know, real outright winners in terms of tech
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products are hard to find, i mean this car in this company really looks nice. melissa: if you look around at what everybody is saying on the internet about the car, one of the criticisms it is just too expensive. it is 60, 70 plus thousand dollars. and, you know, obviously there's a government credit involved but that is taxpayer dollars. do they need to make a more affordable car? >> well let's, about the tax, i mean these cars are not subsidized by the government. the purchase is subsidized by --. melissa: what is the difference? sounds like you're splitting hairs. >> the difference we're talking about demand, not income. so, yes, if the subsidies go away, which they will. the company put as cap of incentives of about 50 or 60,000 units of the after that those federal tax credits go away regardless and tesla is on, on line to build that many cars in the next two years. so it's not really incentivized, it is not
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subsidized by the government. and then, the other thing is that, i'm sorry, what was your question again? melissa: well, it is okay. is it just too expensive. i know he will come out with a cheaper one later. >> right. melissa: i guess the better question is it that much better than other electric cars out there? you are the expert, you follow the field. you drive the cars. is it that much better? >> that's a good point because i would caution extending the success of the tesla to other electric vehicles. you know, this is an extraordinary car built in a disruptive way and sold disruptively by the way. melissa: right. >> and --. melissa: they don't have dealers. they sell directly to the consumer f it goes to a dealership it is unfair. >> exactly. it is a big kerfuffle with the dealers, state franchise car dealers do not like this idea at all. so anyway, so, they have, the price is going to come down. the car is really excellent. the technology is proprietary. they also practice a kind of
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vertical integration that, you know, no other car company currently does. melissa: let me ask you about the stock here because that is what we're really -- it has exploded. everybody is talking about it whether you care about the car or not, you want to be an investor. a lot of people think this is a short squeeze because it was so heavily shorred. then you get a bit of good news it explodes higher and crushing all the shorts in its way. do you think this momentum is sustainable? or was this move we're looking on the screen simply a short squeeze? >> well it's partly a short squeeze. i'm sure people who are short in the company now want to go long and that is driving it a little bit. these are all, these are gradations. the company's financials, it was not modeled to be a profit machine to begin with and so, and they're going to diversify their product line. that's huge because what the company now needs, as anybody familiar with the business will tell you, more volume. melissa: yeah. >> they need more bandwidth
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and they will do that with an suv product in a year or some and then you're looking at, a much more stable and diversified company. melissa: we'll certainly be interesting --, it will be interesting to watch. elon musk another reason it is popping. he putting another million dollars -- 100 million dollars of his own money buying common and preferred. his other company that focuses on solar, that stock price exploded 46% in the same time period. he seems to have the magic touch. definitely one to watch. dan, appreciate you coming on. we appreciate you coming on. >> a pleasure, thank you. melissa: we have breaking news, president obama will deliver a statement on the widening irs scandal at 6:00 p.m. eastern, fox business will take that live. 6:00 p.m. eastern on the irs scandal. be sure to stay tuned. that will be a big one. up next on "money" it has been a brutal few years for traditional homebuyers but banks are finaaly rolling out the red carpet after shutting them out? we'll tell you what it means
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for country's hottest property markets. plus the shrinking federal deficit, projections this year will be maller than 2008. it sounds great. not so fast. we'll debate it. "piles of money" coming up. ♪ . i'm so glad you called. thank you. we're not in london, are we? no. why? apparently my debit card is. what? i kn. don't worry, we have cancelled your old card. great. thank you. in adtion to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock thelp protect your money and fincial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things hapn.
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melissa: jpmorgan has confirmed to fox business that it has submitted an official legal request to bloomberg lp over its terminal snooping scandal. jpmorgan says, in a quote to fbn, our legal department sent a formal request to bloomberg to verify exactly what information reporters had access to and confirmation of their controls to prevent further breaches. so piling on there what goldman sachs has done. interesting. all right. so you've heard a million times how tough it's been to buy a home with banks holding back from lending. it certainly helped foreign buyers but now times may be a changing for traditional buyers wanting back in the game. fox news's phil keating is down in florida with more. phil, what is happening there? >> hey, melissa. things are getting better for those stuck in the period of time pet wall rut of renting. for the past four or five years if you did not have 20 or 30% down for a down payment very likely you would be iced out, frozen
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out from getting a new home loan. now banks, lenders, even the federal housing administration are offering mortgage loans as little as 3.5, even 3% down. that is a big step, enabling first-time home owner troy simmons to buy this one bedroom condo in downtown miami. >> couldn't get into a property if it wasn't for 3% down. and, take it as a whole, if we would have saved our money, it would have taken us another year-and-a-half to actually save that amount of money to get into a place. >> recall how good times were just 10 years ago when you could buy a property with very little, sometimes even no down payment at all, from two,000 five high of $5.3 trillion, lent out for residentialal buying. you could see the big drop after that. as the recession approached and hit. but on the ride in 2012 lending borrowing is rising and the mortgage banking association says last year
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residentiaa lending went you have 7%. this year is so good it is on track for another 12% increase. melissa. melissa: lowdown payments that is how we got into this mess in the first place. >> true. melissa: regardless what does it all mean for the foreign buyers we keep hearing about? >> they are still dominating the market. there are some analysts suggest all of this reliance on foreign wealthy buyers could lead to a bubble but, most other analysts dismiss that saying there is plenty of rich foreigners out there, eager and willing to buy u.s. property. especially in big international markets like new york, los angeles, and here in miami. in fact, one new miami beach condo tower called glass, which hasn't even broken ground yet where the units average $9 million each, is already halfway sold. melissa: wow. >> while lending is loosening up for the middle class, trust me the lending and financing background requirements are a lot more stringent and strict today than they were back as you
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mentioned during the early 2000s which of course contributed greatly to the recession. melissa: i hope so. i know. i hope we learned something from all this. phil, thanks so much. >> all right. melissa: so we have some breaking news in case you recently joined us. president obama is going to deliver a statement on the widening irs scandal. that is 6:00 p.m. eastern time. just about 20 two minutes from now. fox business will take it live so be sure to stay tuned. in the meantime, wait until you hear this because it is definitely not something you hear every day, the congressional budget office says our federal deficit is going down. new projections say it will be about 25%. that is $200 billion less than was the forecast just three months ago. that is a nice change from four straight years of trillion dollar deficits but, does it mean that we owe thanks to higher taxes? come on! or other things that some of us don't love? here to crunch the numbers are douglas holtz-eakin, former director of the cbo and christian dorsey with
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the economic policy institute. gentlemen, welcome back to the show. >> thank you. melissa: doug, what do you think, are you buying into this better projection? >> 2013 is real. the trouble is it doesn't give you any sustained improvement in the budget outlook over the next 10 years. so you should have been concerned in february when we had $16 trillion in debt and a forecast of just over $6.5 trillion in new deficits. you should be concerned today when we have over $16 trillion in debt and just under $6 trillion in projected deficits. melissa: yeah. >> we got good news for this year but it's over. it is not enough to improve the basic problem. melissa: christian, it seems like a drop in the bucket. >> it seems like a pretty substantial drop in the buckket, melissa, for this year and next couple years but i do agree with doug. over the long term we still have issues that need to be addressed but what the report underscores is there always should have been a separation in washington between our short-term needs and our long-term needs. in the short term what is clearly driving our economic
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malaise is slow economic growth. less than 2% annualized growth in gdp which is not sufficient enough to lower the unemployment rate which is really going to improve economic conditions moving forward. melissa: so, doug, let's build upon that point because if the economy grows will that tackle the entitlement problem? >> we would love for the economy to grow more rapidly. there is no bad news in more rapid economic growth, but, we're going to spend $10 trillion in social security, $8 trillion in medicare, $4 trillion in medicaid, a trillion dollars in the new affordable care act over the next 10 years. that is the deficit problem. without entitlement reform there is no amount of growth that will fix it. melissa: christian, isn't this all noise and nonsense until we fix that problem? >> well, not exactly because, you know, when you have an economy that's suffering from high unemployment andd3 stagnating wages you're not at your full productive capacity. once you reach that level as we've seen in the last few months, once you increase revenues whether it comes
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from tax increases or improved economic conditions, you drastically and very quickly lower your debt position and your deficit position. that should be the first order of business. that is really what we do first before we figure out what is our true remaining structural long-term deficit. melissa: okay, but doug, you're a numbers guy. let's do thisatively, rather than with our emotions. can the economy quantitatively grow enough to deal with paying for our promises for the entitlements and the system that we have laid out? >> no. at the heart of this are programs like medicare, medicaid, affordable care act that have been growing at rates like 6, 7, 8% a year. we'll not see revenues grow at 67, 8% a year. we'll not see the economy grow at 6, 7, 8% a year. there is no way to grow out of the these problems. the bad news in the cbo report if you look at those spending programs, cbo looked at them and didn't say oh, my god they didn't
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get a lot cheaper. they're about the same they were two months ago. we didn't see the improvement in the core problem and the problem is so big we'll never grow out of it. melissa: let me ask the two of you, does the growth in numbers change the conversation at all? christian, what do you think?. >> does it change the conversation in washington? no. melissa: you change the conversation, see how better we did this year, we should raise taxes even more? >> oh god, no. >> it will not change any position or any poll either negotiating group is taking in washington. it changes the talking points a little bit. what is really clear about the long-term problem, douglas points out the macro numbers issues but you have to look at the reasons behind that. we have an aging population and a lot of our spending is going to be consumed with health care costs. those are really the issues that need to be addressed and that's really i think become much clearer now that the baseline has changed from cbo. melissa: okay. we're going to leave it there, gentlemen.
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sorry, doug. we'll get it next time. thanks to both of you. >> thank you. melissa: we could keep going all night. coming up on "money," forget google's huge conference today. the real news is larry page's vocal chord problems. the company often plays down executive health issues. should google investors be worried because at the end of the day it is all about money. ♪
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melissa: so we have breaking news. you are looking right there as we are getting ready for president obama to deliver a statement on the widening irs scandal is expected at 6:00 p.m. eastern. that is about 13 minutes from now. fox business is going to take it live. this story is getting bigger by the minute by the way. and we are all over it. so don't tune away. we'll bring it to you live as soon as that happens. >> techies unite and shareholder listen up. google kicked off the big developers conference, google io, in san francisco today. true to its history they revealed major headlines including that google has 900 million android activation to date, up from 400 million to date at last
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year's meeting. another big topic of conversation, ceo larry page's rare vocal chord problems. here with the latest is fox business's own adam shapiro. i mean the voice and vocal chord thing was thing everyone was focused on. >> i rather when you hear his voice it sound a little bit weak and people are speculating, oh, is there some problem. it is a problem but it's not a terminal issue but it is, he actually talked about this. he got a cold, what was it in 2003. it was a virus. and there was a kind of paralysis of one of his vocal chords. so he asked the doctors at time would there be a chance another vocal chord, they said highly unlikely. guess what? he got another cold and same thing happened. they don't totally understand what causes this. it has to do with the nerve endings. it may have something to do with thyroid because your nerves apparently for your vocal chords are routed through your thyroid, if i understood this correctly. at the end of the day his health is fine.
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his voice was weaker than he would be had he not experienced paralysis on the vocal chords that have beee affected. it makes him harder to do aerobic activity but he still has stamina and those kind of things. >> the bottom line, he said, he made a joke about it. he said i choose my words more carefully which is probably good for a ceo. and he portrayed it as something that doesn't impact his health, not life-threatening. >> not life-threatening. melissa: the bottom line could people -- do people trust that because i remember what happened with the whole steve jobs thing? for a long time they were obfuscating what was going on to be frank about it. >> google shares closed above $900 today. steve jobs was one man. there is more than just larry page at google. there is sergey brin. melissa: okay. >> if you're looking at it from an investor standpoint he may not be able to shout from the mountain tops that his company is truly on a remarkable trajectory but he can say it very quietly.
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melissa: he can. i think we have sound bite. can we pray that? >> we, as google, and as an industry and all of you really are only 1% of what is possible and probably even less than that. and despite the faster change we have in the industry, we're still moving slow relative to the opportunities that we have. melissa: and speaking slowly. >> that part of this is the, i want to say the aerobic aspect of it. melissa: but the message is true. >> the message is true but moving slowly, i mean they announced today, you had it in the headline, 900 million activations of android operating system is on 900 million devices worldwide and only going to grow. there are predictions that mobile devices and tablets are going to double in the number that are out there in the next couple of years because as, less evolved economies if that is the right word, come online
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people are buying them. melissa: yeah. >> in the united states the cool factor we'll get google music today, will compete with spotify, the launch today. do you have a favorite song? melissa: don't put me on the spot. >> feelings, feelings. or you light up my life. there you go. melissa: yeah. >> so, in the old world that --. melissa: laughing at me. what is that? >> in the old world itunes created you have to go buy the song. with google you have to buy the song and download it on computer. if you're really octogenarian you have load it on computer. melissa: eight-track. >> not eight-track. melissa: we have to go. >> good stuff, monthly fee. melissa: thanks very much. adam shapiro. we have breaking news. we're moments away from president obama's statement on the widening irs scandal. that will happen at 6:00 p.m. eastern. fox bit will take it live. you don't want to miss that one. coming up let no good deed go unpunished.
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>> breaking news we are moments away from president obama statement on the widening iras and we're looking at the podium where we are expecting a man of few moments. joining me now david as men and fox news contributor hunt, julie, thank you for coming out. the have all of these scandals were linked. >> what we will not here is the admission that conservative groups were targeted opposed from any other ideology. spin from congressman levin who was a democrat to say not just conservatives but then asked which the progressive and he could not mention any names. clearly this was meant to target one ideological perspective and who would
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have done that? a political operative had interest in doing that. it wasn't just a bureaucrat making the mismanagement mistake. >> this is what he gets out in front of first? >> why would a bureaucrat target conservatives? >> a claim they said overzealous bureaucrats doing it in cleveland. >> but the second point* and i read better today the texas and progressive coalition that was targeted i am not sure that is accurate so they are cleaning there were two or three progressives. >> out of 280 nonprofits that came out and i think about 80% either were denied
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or was through their application because they could not deal with it. >> is it important politically he takes responsibility for one of these? as we have been watching whether jay carney or eric holder, is seen as a strategy is to push between the administration nor anyone at the top or the individuals down the pike. >> that would be shocked if he took responsibility to say that. >> but the buck stops with me. >> when either iran contra? is not a bipartisan one is less than any president took the blame for anything that happened on their watch? they don't. they exist the operation exists in the bureaucracy exist to great distance between any scandals of themselves and the president >> but there is a name.
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everybody is calling for a name who ordered this? how hyatt doesn't go? what was the purpose? all prosecutors hope for a motive a bureaucrat does not have a motive other than to keep his job for the political operative goes after his opponents. >> the guy in charge the called over bush appointee he cannot fire him so who do you fire? >> the current acting director had just announced by the way he will give testimony under oath. >> we are expecting this to start that is all the money we have for you. gerri willis will wait as we wait for the president. gerri: awaiting a statement from president obama on any minute for the scandal of the irs just by dezhnev, it's the agency gave the liberal groups a
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pass and how much scrutiny was given too conservative to party groups of this when the irs once more power, employees and a bigger budget. rich jensen has been following this story all week long and this is an extraordinary scandal that involves a white house and the president obviously he will want to contain this quickly. >> absolutely. this is not a briefing room statement it is happening in the east room to get it of much more presidential feeling and just after a meeting with secretary lew the internal revenue servicc is part of the treasury department and they say the president called the meeting to discuss the next up for the irs of president has failed to outline much of a response other than describe for a tax-exempt status